Minister for Superannuation and Corporate Law http://minscl.treasurer.gov.au

PRESS RELEASE

NO. 25

COMPANY DIRECTORS’ SURVEY LAUNCHED

Senator the Hon Nick Sherry, Minister for Superannuation and Corporate Law, has today welcomed the launch of a survey of Australian company directors which will provide valuable input to Government on the issues faced by this important group.

Treasury is conducting the survey of 600 directors of S&P/ASX-200 companies in conjunction with the Australian Institute of Company Directors to form views on how current laws affect decision making by directors.

”Directors play a crucial role in the economy, by pursuing commercial opportunities and creating wealth for shareholders. Their decisions can also affect the community at large.

“The law should provide directors with clear standards of behaviour and address any failures to meet those standards with credible, transparent and flexible sanctions,” Minister Sherry said.

The survey considers the current obligations imposed on directors under the Corporations Act 2001 and the sanctions which apply for misconduct under Australian law. The Government expects the survey results to assist in developing future reform proposals to address both corporate and director misconduct.

”Examining directors’ liability and range of other issues that relate the role of directors is a key part of the Government’s agenda to enhance corporate governance. Getting the balance right so that our directors make an entrepreneurial contribution is critical and this survey will give us important evidence to inform the policy debate.”

”I would encourage directors to respond to the survey,” Minister Sherry added.